‎
‎
‎The Anambra State Government has intensified discussions with commercial banks on financing arrangements for major housing and educational infrastructure projects aimed at improving access to affordable accommodation for civil servants and students across the state.
‎
The discussions formed part of efforts to finalise a Memorandum of Understanding (MoU) with interested financial institutions for the implementation of the proposed Social Housing Scheme for Civil Servants and Students’ Hostel Projects across campuses of Chukwuemeka Odumegwu Ojukwu University and the Nwafor Orizu College of Education, now STEM University, Nsugbe.
‎
‎The Ministry of Housing received funding proposals from Fidelity Bank, First City Monument Bank (FCMB), and United Bank for Africa (UBA) on September 3, at the Jerome Udoji Secretariat Complex, Awka.
‎
‎Presenting Fidelity Bank’s proposal to the management of the Ministry, the Branch Head, Mr. Tochukwu Nnachi, said the bank had reviewed the designs submitted for the proposed projects and developed financing terms for consideration.
‎
‎According to him, the proposed student hostel project has a total financing requirement of approximately ₦10 billion, with a single-obligation financing arrangement of ₦1.5 billion. He stated that the proposed interest rate was 28 per cent, with a five-year (60-month) tenure and a one-year moratorium.
‎
‎Mr. Nnachi further explained that the repayment arrangement would be domiciled through the school’s account, with repayment expected within 48 months.
‎
He stressed that the funds generated for repayment would not be diverted to recurrent expenditure.
‎
‎Responding to the proposal, the Commissioner for Housing, Arc. Arize Henry, appreciated the bank representatives for their presentation and called for a clearer repayment schedule.
‎
‎He specifically requested that the financial terms be presented in a simple chart showing the monthly repayment obligations, so that the cost implications could be easily understood by all stakeholders.
‎
‎The commissioner disclosed that the State Governor, Prof. Chukwuma Soludo, was committed to providing improved accommodation for civil servants and students in the state.
‎He said the governor was interested in the construction of about 21 blocks of six flats for civil servants at Ebenebe and more across the State, as well as 16 hostel units across four campuses and institutions, including the Igbariam and Uli campuses of COOU, the Teaching Hospital at Amaku, Awka, and the Nwafor Orizu College of Education, now STEM University, Nsugbe.
‎
‎According to Arc. Arize, the projects are designed to address accommodation challenges confronting civil servants and students while providing a more sustainable housing solution for the people of Anambra State.
‎
The Permanent Secretary of the Ministry of Housing, Mr. Tochukwu Obodogha, noted that appropriate arrangements would be made to determine eligible beneficiaries of the civil servants’ housing scheme, adding that the Head of Service would be in the best position to determine those who would benefit, particularly in unforeseen circumstances and how to handle it
‎
‎In their separate contributions, the Director of Building Construction and Maintenance, Bldr. Samuel Ojeleke, and the Director of Architects, Arc. Onobome Mbanugo, called for a review of the proposed financial terms.
‎
‎They appealed to the banks to reduce the interest rate and extend the repayment period, noting that a more flexible arrangement would accommodate civil servants who have less than five years remaining in service.